Management And Business Analysis Of Singtel Optus Pvt Limited

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Discuss about the Management and Business for Singtel Optus Pvt Litimed.

The management of the business plays an important role in the enhancement of the business. This assignment highlights the critical issues that are related to the business and context of Optus. The various internal factors that affect the business and the business decisions of the business are highlighted in this assignment. The strengths, weaknesses, threats and opportunities of the company are analyzed using the SWOT analysis and the external factors that is analyzed using the PESTLE analysis has been discussed in details. The various theories and concepts that affect the business structure of Optus are also mentioned in details.       

Singtel Optus Pvt Litimed is one of the second largest telecommunication companies in Australia. This company trades mainly under the name of Optus brand. The details of the business of Optus have been mentioned in details. The internal issues that affect the business of Optus is analyzed using the SWOT analysis. The strengths of Optus include being one of the largest telecom companies in Australia (Optus, 2017). The company provides one of the most reliable services to the people of Australia. With the enhancement in the growth in the mobile and internet services, across the country, the company has been growing rapidly. The strengths also include the major investment in the home telephone. However, the weaknesses include the loss of the first mover’s advantage. Moreover, the limited regional presence compared to the competitors who have a global presence results in the potential weakness of the company. The opportunities that are relevant for the company includes the shift in the industry from the telephonic communication to the voice over Internet protocol. The company is able to expand and venture into the domain of voice over IP. Moreover, the competition among the wired networks also presents a good opportunity for the business organization. The steady increase in the usage of the internet among the people could provide an opportunity for Optus to expand their business to cater to the growing demand. An in depth analysis of the opportunities play an important role in the business decision. The business decision is taken considering the opportunities that could be taken up by the company (Optus, 2017). Along with considering the strengths and weaknesses, along with highlighting the opportunities, it is important to highlight the threats as well. The threats include the competition for laying the fiber optics as well as giving direct access to these fiber optic lines (Dobscha, Mentzer & Littlefield, 2015). With newer technologies upcoming every day, the company struggles to cope up with the speed of the new technologies. Merger and acquisition might also reduce the share price of the markets. Moreover, competitors such as Vodafone Australia and Telstra has been rising in competition, thus giving a threat to the business of Optus.

Conclusion

Another framework that is used efficiently to analyse the impact of the internal forces is the McKinsey 7S framework

Structure: The structure of Optus is an efficient one and it provides a productive platform for technological advancement (Optus, 2017). 

Strategy: The strategy of the company is to provide advanced technological support and enhance the communication system to satisfy the customers.

Skills: The highly skilled employees ensure that the productivity of the company is high enough.

Staff: The staffs are friendly and hard workers, with innovation (Fan, Wong & Zhang, 2013).

Style: High technology communication solution is provided by the company.

System: The framework incorporates a smooth operation of the organization, with productive providers and strategic framework alongside proficient staffs (Zeng & Song, 2014).

Shared values: The common qualities incorporate accomplishing clients' fulfillment and goodwill.

The external environmental factors that play a pivotal role in the business decision and the business strategy could be analyzed using the PESTLE analysis.

The external environmental factors that has a significant impact is also analysed using the Porter’s Five force model. The five forces that casts a strong effect are as follows:

Supplier’s power: The supplier power of Optus is quite strong. In order to provide advanced telecommunication facilities, the company has to depend on various suppliers. Since the company is one of the leading telecommunication companies, hence the best suppliers are attached to Optus. Hence, the supplier’s power is strong.  

Threat of new Entrants: This is a strong threat to Optus. This is because, with the growth and advancements in the telecommunication technology, many new companies have been growing up, and thus results in a threat of new entrants to Optus (Wheelen et al., 2015). 

Threats of the substitutes: The threat of an able substitute is less since Optus is an established telecommunication company, and cannot be easily substituted by any other company. However, the companies such as Telstra and Vodafone Australia has been gaining power in the market, thus providing a substitute for the customers of Optus (Stein & Ramaseshan, 2016).

Buyer’s power: The buyer’s power of Optus is strong enough and the range of customers include individual’s as well as large companies and corporate.

Competitor rivalry: The rivalry with other companies and healthy competition would motivate the staffs of Optus to incorporate innovation in their products and services.

Risk assessment for Optus is as follows:

1. Poor determination of the providers: One of the real dangers confronted by Optus is choice of the poor providers. Since Optus have an expansive territory of administrations and items, thus an assortment of providers should be contracted Choice of poor providers would bring about corruption of the matter of Optus (Optus, 2017).
2. Poor checking of the contenders: The contenders should be observed consistently, with the end goal that the contenders do not overwhelm the organization. However, the absence of standard observing would bring about loss of business of Optus (Gollenia, 2016).
3. Low reactions to financial changes: It is essential to react to the economic changes in the country in which it operates. Carelessness of reactions to the financial changes brings about loss of profitability of business (Rothaermel, 2015).

The organizational practices of Optus that would enhance the business are:

1. High performance practices: High execution framework should be polished by the representatives of Optus with the end goal that the workers are aligned to work diligently and are motivated to accomplish the organizational goals.
2. Control: Adequate power is given to the workers of Optus with the end goal that they can take independent decision, as and when required. This division of power is vital for the fruitfulness and enhancement of business.
3. Adequate information: A productive data framework is accessible at Optus and the required access to the information is given to the employees.
4. Rewards and recognition: The reward and recognition plays an important role in improving the productivity. Giving adequate incentives to the employees motivate them to work sincerely. Thus, rewards and recognition plays an essential role in improving the productivity.

Conclusion

Optus is one of the largest telecommunication companies in Australia. This essay highlights the hierarchical structures of Optus along with the factors that affect the business of the company. The external conditions such as the political and economic factors are investigated using PESTLE analysis and Porter's five forces. The internal factors are analyzed using the SWOT and McKinsey 7S framework. The risks that the firm may face are also included in this assignment. The risks include the failure to identify the suppliers as well as the competitors that might prove to be threats to the company. Thus, a complete overview of Optus is presented in this assignment. 

References

Dobscha, S., Mentzer, J. T., & Littlefield, J. E. (2015). Do external factors play an antecedent role to market orientation?. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 333-337). Springer International Publishing.

Fan, J. P., Wong, T. J., & Zhang, T. (2013). Institutions and organizational structure: The case of state-owned corporate pyramids. Journal of Law, Economics, and Organization, 29(6), 1217-1252.

Gollenia, L. A. (2016). Business Transformation Management Methodology. Routledge.

Optus, S. (2017). Optus - Mobile Phones, Broadband Internet, NBN, TV, Home Phone. Optus.com.au. Retrieved April 17, 2017, from https://www.optus.com.au/

Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.

Stein, A., & Ramaseshan, B. (2016). Towards the identification of customer experience touch point elements. Journal of Retailing and Consumer Services, 30, 8-19.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2015). Concepts in Strategic Management and Business Policy: Globalization, Innovation, and Sustainability.

Zeng, P., & Song, T. (2014). Exploring Driving Forces for Business Model Innovation: The Integrative Perspective of Internal and External Factors. Chinese Journal of Management, 7, 008.